The president of the United States, Donald Trump, announces an agreement with Pfizer to reduce the prices of Medicaid medications in the Oval Office of the White House on September 30, 2025 in Washington, DC.
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President Donald Trump announced on Tuesday an agreement with Pfizer To voluntarily sell your medications for less, since your administration presses to link the prices of US medications with the cheapest abroad.
Pfizer has agreed to take measures to reduce the prices of medicines in the United States, including the sale of their existing medications to patients from Medicaid at the lowest price offered in other nations developed, or what Trump calls the most favored nation price, according to the president. Pfizer will also guarantee the same “most favored nation” prices in their new medications for Medicare, Medicaid and commercial payers.
As part of the agreement, Pfizer also agreed a three -year grace period during which the company's products will not face specific pharmaceutical tariffs, as long as the medication manufacturer invests even more in the manufacture of the United States. The company plans to invest $ 70 billion to rebuild national medication research and research facilities.
Pfizer shares increased more than 4% on Tuesday after the announcement.
“Pfizer agreed to provide some of the most popular current medications to our consumers at very discount prices at any 50% and even 100%,” Trump said, he added that these medications will be available for direct purchase with an online discount on a website that the administration calls Trumprx.gov.
Trump said he is working with other drug manufacturers to ensure similar agreements during the next week, and added that Pfizer is the first.
“If we do not make a deal, we are going to rate,” he said about the drugs of the other companies.
The White House confirmed with Eamon Javers de CNBC that Eli Lilly is in negotiations with Trump for the next drug prices agreement, without providing more details about how advanced the conversations are.
The agreement occurs when Pfizer and another 16 drug manufacturers face Trump's deadline to take measures to reduce drug prices, as described in the president's letters. Trump signed in May an executive order that revived a controversial plan, the “most favored nation” policy, which aims to link the prices of some medications in the United States to the significantly lower abroad.
During the press conference, the Pfizer CEO, Albert Bourla, said the company satisfied the four requests that Trump described in his letter. Among the other steps is to seek more strict price negotiations abroad and adopt models that sell their medications directly to consumers or companies.
“The great winner will clearly be American patients, there is no doubt,” Bourla said. “They are the ones who will see a significant impact on their ability to buy medicines.” But he said that “American innovation and the US economy” will also be “winners” with the agreement.
Pfizer discount drugs
Pfizer said he will offer a large part of his primary care treatments and certain specialized brand drugs with 50% discounts on average and up to 85%, according to a company statement.
In a separate statement on Tuesday, Pfizer said that more than 100 million patients are affected by the diseases that medicines treat, such as migraines, rheumatoid arthritis, menopause and atopic dermatitis.
The company provided examples of drugs with discount under Trumprx.gov. Duavee, a treatment for certain symptoms of menopause, will be available for only $ 30 on the site, which is a discount of 85% in its current price.
Patients may also pay only $ 162, a reduction of 80% at the current price, due to the eucrisa of prescription ointment, which is used to treat mild to moderate eczema. Tovias, a hyperactive bladder medication, will also be available at Trumprx.gov for only $ 42, which is a discount of 85% at the current price.
Pfizer said that it also plans to offer products such as April for autoimmune diseases with a 60%discount, Xeljanz for rheumatoid arthritis with a 40%discount and Zazvpret migraine drug with a 50%discount.
These medications do not seem to be significant income drivers for Pfizer. Quarterly and company's gain reports of the company only include specific income of products for Xeljanz, which generated $ 349 million in world sales in 2024.
The agreement occurs when drug manufacturers are prepared for Trump planned rates on pharmaceutical products imported to the country. Trump said in a real social position on Thursday that the United States will impose a 100% tariff on “any brand or patented pharmaceutical product” that enters the country from October 1.
The measure will not apply to companies that build drug manufacturing plants in the United States, Trump said. He added that the exemption covers projects in which construction has begun, including sites that have broken the land or are under construction.
In a note on Tuesday, BMO capitalist Markets Evan Seigerman said the agreement is positive for Pfizer's actions and the broader pharmaceutical sector, since “adds certainty and changes Potus policies potentially far from pharmaceutical tariffs.”
“Today's agreement seems to establish a path for other pharmaceutical players to continue, allowing main price concessions and a Trump 'win' without a more punitive implementation” of the most favored nation's policies or tariffs, he added.
